Allegro.eu, the Polish e-commerce company, is anticipating slower growth in revenue and adjusted earnings for the holiday quarter. This comes as a result of weakness in its international operations and currency headwinds, causing its shares to fall.
Slowing Growth Forecast
As of 1027 GMT on Thursday, Allegro’s shares experienced a 7.4% drop to PLN30.15. The company expects its revenue in the fourth quarter to range from a 2% decrease to a 2% increase compared to the same period last year. Additionally, it forecasts that adjusted earnings before interest, taxes, depreciation, and amortization will grow by up to 6%.
Third Quarter Performance
During the third quarter, Allegro saw its revenue grow by 4.8% to 2.43 billion Polish zloty ($600.5 million), while adjusted Ebitda saw a 26% increase to PLN677 million.
International Segment Challenges
Allegro faced declines in revenue and gross merchandise value within its international segment during the early weeks of the fourth quarter. The company attributes this to foreign-exchange headwinds. However, its Polish operations had a strong start to the Black Friday campaign following a growth slowdown at the end of the third quarter.
Financial Turnaround
In the third quarter, Allegro managed to turn around its financial performance, reporting a net profit of PLN241.7 million. This is in stark contrast to the PLN2.20 billion loss it recorded in the same period of the previous year, which was largely due to a write-down on the assets of its Mall Group business.
